S4 Capital issues trading update

In a trading update, S4 Capital said its gross profit increased by ‘almost’ 5% in May and 3% in April.

Separately, S4 outlined plans to raise gross proceeds of up to approximately £100m through a proposed fundraising.

The company said in its trading update that funds will be used to back future deals and to ‘provide additional firepower to allow the group to accelerate its merger strategy’.

S4 Capital has made several acquisitions since it was founded by former WPP chief executive Martin Sorrell in 2018.

In June, the company announced plans to acquire Australian analytics company Lens10, to be merged with its media consultancy Mightyhive. It follows the earlier acquisition of Latin American data and analytics consultancy Digodat.

Sorrell, executive chairman, S4 Capital, said: “We believe that it is precisely the time to quicken the development of our capabilities around digital transformation, accelerated by the pandemic. We have a great team in place, eager to create new and exciting ideas for our clients. We, therefore, want to ensure that the company has the necessary flexibility to capitalise on opportunities as they arise.”